Danish beer giant Carlsberg announces increase in prices

Danish brewer Carlsberg warned Friday that it will raise beer prices this year to offset rising costs of ingredients after posting a net profit exceeding pre-pandemic levels in 2021.

Carlsberg is set to raise prices in 2022 as the beer giant's costs increase.
Carlsberg is set to raise prices in 2022 as the beer giant's costs increase. File photo: Henning Bagger/Ritzau Scanpix

The world’s fourth biggest beer producer acknowledged that the higher prices could have a “negative impact” on consumption.

“The significantly higher input costs and continued impact from COVID-19 will pose challenges in 2022, but we’re well prepared,” chief executive Cees ‘t Hart said in a statement.

Prices of raw materials for a slew of industries have risen across the world as supply struggled to keep up with demand as economies recovered from the pandemic last year.

In 2021, Carlsberg’s net profit attributable to shareholders rose by 13 percent to 6.8 billion kroner (914 million euros), even though bars and restaurants closed on a number of its markets, performing better in 2019 and 2020.

Sales increased by 14 percent to 66.6 billion kroner while the number of drinks sold rose by eight percent despite a seven percent decline in western Europe.

“We’re very satisfied with the Group’s 2021 performance. Although our business was significantly impacted by Covid-19, we delivered strong top- and bottom-line growth and free cash flow,” Hart said.

For 2022, Carlsberg forecast a limited increase in operating profit of between zero and seven percent because of rising costs and the continuing effects of the coronavirus pandemic.

READ ALSO: Carlsberg cans plastic rings to cut waste

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Scandinavian airline SAS passenger numbers ‘highest since pandemic’

The number of passengers who flew with Scandinavian airline SAS in April was far higher than during the same month in 2021.

Scandinavian airline SAS passenger numbers 'highest since pandemic'

Over 1.5 million flew with SAS last month, around four times as many as in April 2020 when Covid-19 restrictions were still in broad effect.

SAS still has some way to go to return to the number of passengers it registered before spring 2020, the “pre-pandemic” period for the hard-hit industry.

The airline was affected by a pilots’ strike in April 2019 which affected results for that month, but 2.5 million people flew with SAS in April 2018, demonstrating how the airline is still lagging behind earlier years despite the apparent recovery.

“We continue the ramp-up and see the highest number of passengers since March 2020,” president and CEO of SAS Anko van der Werff said in a press statement.

“Looking forward, sales and booking trends are positive for the summer period ahead,” he added.

SAS’ capacity in April was around two-thirds of its capacity in 2018.

“SAS is a bit more restrained in increasing its capacity than many of its competitors,” aviation sector analyst Jacob Pedersen of Sydbank told news wire Ritzau.

The company faces a challenge to make as much profit from its services as it did before the Covid-19 pandemic, according to Pedersen.

“The snapshot image of the trend in April is certainly encouraging but a closer analysis gives less cause for encouragement,” he said.